Bangladesh's economy is expected to recover gradually in the 2026–27 fiscal year, with GDP growth projected at 4.5 percent, according to the latest Asian Development Outlook released by the Asian Development Bank (ADB). While the forecast marks an improvement over the previous fiscal year, elevated inflation is expected to remain a major challenge. The ADB said weak banking performance, energy supply constraints, and global economic uncertainty are likely to limit the pace of growth. It also revised its inflation forecast upward from 8.5 percent to 8.8 percent, citing higher energy costs, exchange rate pressures, and persistent food and service prices. The report noted that strong remittance inflows, a resilient services sector, and ongoing economic reforms could support the recovery. However, the ADB stressed that sustained long-term growth will depend on improving macroeconomic stability, strengthening financial sector governance, enhancing the investment climate, and accelerating reforms in the energy and infrastructure sectors.